managemnent thoughts (ses 5 6)

8/13/2019 Managemnent Thoughts (Ses 5 6)

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EVOLUTION OF MANAGEMENT

THOUGHTS

Management- Past to Present


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Learning Objectives

Describe how the need to increase organizationalefficiency and effectiveness has guided the evolution ofmanagement theory .

Explain the principle of job specialization and division oflabor, & tell why the study of person-task relationships iscentral to the pursuit of increased efficiency.

Trace the change in theories about how managers shouldbehave to motivate and control employees.

Explain the contributions of management science to theefficient use of organizational resources.

Explain why the study of the external environment and itsimpact on an organization has become a central issue in

management thought.


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Evolution of management thoughts

1. Classical Approaches

2. Neo- classical Approaches/Behavioral Management Approach

3. Modern Approaches

Bureaucratic Approach

Scientific Management

Administrative Management

Hawthorne Studies &

Human relations approach

Quantitative approach

System approach

Contingency approach

Maslows Theory of human

Needs

McGregors Theory of X &

Theory Y


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Chronological Development of Management

Perspectives


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Early

ClassicalApproaches

Bureaucracy

ScientificManagement

AdministrativeManagement


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Max WeberFather of Bureaucracy (1864-1920)

A structure with highly routine operating tasks achieved throughspecialization, very formalized rules and regulations, tasks that aregrouped into functional departments, centralized authority, narrowspans of control and decision-making that follows the chain of

command

Features

Principle of Hierarchy

Systematic division of work

Rules, Regulations and procedures

Records in writing

Impersonal relationships

Rational Personnel Administrative class

1. Bureaucracy

1. Early Classical Approaches

Limitations

Rigidity

Impersonality

Displacement of objectives

Empire building

Red tape

No real right to appeal


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Bureaucratic Hierarchical Power Structure


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Bureaucratic Principles

A Bureaucracy

should have

Written rules

System oftask

relationships

Hierarchy of

authority

Fair evaluation

and reward


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Frederick WIins low Taylor-Father of ScientificManagement

An approach that emphasises the scientific study of work in orderto improve worker efficiency. Thus putting the right person at right

job with correct tools & equipment and motivating workers throughthe economic incentives.

2. Scientific Management

Basics of Scientific Management:

Study the work scientifically

Select workers & train them

Match jobs & Workers properly

Distribute gains between employees& employers


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Scientific Management

Functionalforemanship

Scientifictask

planning

Differentialpiece rate

system

ey concepts

Time &

motionstudies

Standardisation


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Scientific Management criticised on several grounds:

1.Exploitative device-objective of workerseconomic welfare was never realized.

2.Depersonalised work- workers weremade to repeat same operations daily,produced boredom & monotony.

3.Unpsychological- no accurate informationhow the wages are to be given, how tomeasured workers efficiency

Limitations of Scientific management


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1.Undemocratic- it overshadows workersindependence, thinking workers as unthinking

animals.

2.Anti-social- workers treated as glorifiedeconomic tools only.

3.Unoriginal- Hoaglang questioned theoriginality of Taylorsidea.

4.Unrealistic ignoring the social & egoneeds of people i.e. satisfaction, growth

opportunities, challenging work, recognition etc.


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Henri Fayol : Father of Administrative

Management An approach that focuses on principles that can be used by

managers to coordinate the internal activities of organisations.

Acc. to Fayol 6 activities of business:

* Technical * Commercial

* Financial * Security

* Accounting * Managerial/Adm

Fayol defined 5 Management functions:

a) Planning-Future course of action to meet organizational goals.

b) Organising-Mobilising the material and HR.c) Commanding-Directions to the employee

d) Coordination-Recourses & activities are working harmoniously.

e) Controlling-Monitoring the plans.

3. Administrative Management


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Fayols 14 Principles of Management

At the operational level managers should apply

fourteen functions:

1. Division of work: Principle of

specialization applies. Specialization

increases output by making employee

more efficient.

2. Authority & Responsibility: To whom

authority is given to exercise, must also

be prepare to bear responsibility.

3. Discipline:Must obey & respect the rules.

Discipline result of effective leadership.

Judicious use of penalties for the violation

of rules.


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4. Unity of command: command from

only one superior . Conflicts in

instructions & confusion of authority

result.

5. Unity of direction: one manager one

plan for all operations. Ensures unity

of action and facilities coordination.

6. Subordination of individual interest tothe common good: Managers musthave good conduct & behavior, mustbe honest and fair, prepared tosacrifice personal interests.

7. Remuneration of personnel:Compensation for work done shouldbe fair .


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8. Order: Materials & people in theright place at the right time.

9. Centralization:Decreasing the roleof subordinates in decision-making. Subordinates haveenough authority to do their jobsproperly.

10. Scalar chain: The chain ofauthority from top to bottomthrough which communicationsflow.

11. Equity: Fair in dealing withemployees. Combination of justice& kindness. Requires good sense,experience.


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12. Stability of tenure:encourage long-term

commitments of employees.

13. Initiative: encouraged tothink through to implementplan of action, opportunity to

perform independently.

14. Esprit de corps: union isstrength


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Neo-

classical

/Behavioral

Management

Approach

Human relations approach

Maslows Theory of

human Needs

McGregors Theory Of

X & Theory Y


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2. Behavioral Management Approaches

1. Human Relations Approach

Key Concepts:

- Employees not only eco. being, also social as well aspsychological being.

- Emphasis on creating humanistic or informational org.

- Strives to create + tive work environment

- Focus is on people

- Help make workers more productive, concerned withmotivating people to peak performance


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The Individual

The work group The work environment

The leader

Features of Human Relations

Criticism

1. Philosophy reduced efficiency, transformed factoriesinto unthinking place of comfort.

2. Scientific validity weaknesses of design, analysis,interpretation.

3. Short-sightedlacks adequate focus on work, neglectseco. dimensions of work satisfaction

4. Over concern with happinesshave lot of workers butun productive.

5. Anti-individualsdiscipline of boss replaced by disciple

of group


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2. Behavioral Sciences Approach

Applied knowledge of behavioral science

Performance increase with opportunies to socialize

Social beings motivated by social interactions

Basis of Hierarchy of social needs

Emphasis on self-direction, self-control, creativity

Its contribution to the understanding of individualmotivation, group behavior, interpersonal-relationship

Limitations

Self-actualizing view- not every employee has the samedesire

Diverse needs- not every one is motivated by the sameneed

Discounted non-human aspect

Searched for one best way of managing


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Maslows Hierarchy

of Needs

EsteemNeeds

SocialNeeds

Safety Needs

Physiological Needs

Self-Actualization

(Majority)


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Classical versus Behavioral Perspective

Focused onrational behavior

ClassicalPerspective

Acknowledged theimportance of human

behavior

BehavioralPerspective

vs.


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Proposed the Theory X and Theory Y

styles of management.

Theory X managers perceive that

their subordinates have an inherent

dislike of work and will avoid it if atall possible.

Theory Y managers perceive that

their subordinates enjoy work andthat they will gain satisfaction from

performing their jobs.

3. McGregors Theory Of X & Theory Y


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2007 Thomson/South-Western. All rightsreserved.

226

Factor Theory X Assumptions Theory Y Assumptions

Employ ee at t i tude Employees dislike work and. Employees enjoy work andtoward work will avoid it if at all possible. will actively seek it.

Management v iew Employees must be directed, Employees are self-motivatedof direct ion coerced, controlled, or threatened and self-directed toward achieving

to get them to put forth adequate effort. organizational goals.

Employ ee view Employees wish to avoid responsibility; Employees seek responsibility;ofdirect ion they prefer to be directed and told what they wish to use their creativity,

to do and how to do it. imagination, and ingenuity inperforming their jobs.

Management style Authoritarian style of management Participatory style of management

Comparison of Theory X & Theory Y


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Modern

Approaches

Quantitativeapproach

System approach

Contingency

approach


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3. Modern Approaches

1. Quantitative Approach

Focus is on decision making on costs, revenues, ROI etc.

Focuses on the use of mathematics, statistics to aid decisionmaking & managerial effectiveness.

Main branches: management science, operations management,management information system.

Emphasis put on computers & theirs ability.

Identify & pin point possible ways of solving

Promotes disciplined thinking

Limitations

Vital information may missing, defy analysis No importance given to human relations, individuals need.

Inputs of decision-making not readily available.

Decision quality depends upon data being used


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2. Systems Approach Decisions creates ripple effect- Must anticipate repercussions on entire

org.

It tries to solve problems by diagnosing them within the framework ofinputs, transformation, outputs & feedback

System- set of interrelated, mutually related parts.

Sub-system goal sub-sys, technical sub-sys, structural sub-sys,managerial sub-sys, psychological sub-sys.

Synergy- getting all the elements functioning together for optimal

organization. Open & closed system-

System boundary- to separates it from its environment

Flow- successful interaction with the environment, flows of information,materials, energy.

Feedback- central to system control, warning signals, corrective actions

Does not attempt to identify situational factors.

Tends to over emphasis oneness, coordination, harmony.

Org have many in-build conflicts

Limitations


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The Organization as an Open System

InputStage

Raw

Materials

Conversion

Stage

MachinesHuman skills

Output

Stage

Goods

Services

Sales of outputs

Firm can then buyinputs


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3. Contingency (situational) Approach

Argues that appropriate managerial actions depends upon theparticular parameters of the situations

Some motivated by challenging work. Analytical & situational to develop a practical answers to the

questions at hand.

Organizational efforts based on behavior of actions outside thesystem

A particular action is valid under certain situations Each org. unique in itself

Limitations

Inadequacy of literature

Complex Reactive not proactive

incomplete


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Contingency Theory

The idea that the organizational structures and control systems

are contingent on characteristics of the external environment


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An Example of the Contingency

Perspective

Joan Woodwards Research

Discovered that a particular management

style is affected by the organizations

technology. Identified and described three different types

of technology:

Small-batch technology Mass-production technology

Continuous-process technology


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Thought for the Day

If You fall dont see

The p lace where you

fellBu t see the p lace

where you s l ipped

Success is al l about

Correct ing the

i t k

managemnent thoughts (ses 5 6)

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